Navigating the Canadian tax system can be daunting, especially for new immigrants. Understanding the importance of timely and accurate tax filing can save you from future hassles and ensure you receive all the benefits and credits you’re entitled to. This guide covers the essentials of filing taxes as a new immigrant in Canada, including residency status, world income, foreign property, and the filing process. Importance of Filing Taxes Many new immigrants mistakenly believe they don’t need to file taxes if they were in Canada only briefly to obtain their permanent residency (PR) or work permit before returning to their home country. However, it is crucial to file taxes for the year you received any Canadian visa status, even if you had no income or weren’t residing in Canada. Filing your taxes accurately and on time helps the Canada Revenue Agency (CRA) calculate your GST credits and other benefits, ensuring you receive what you’re entitled to when you eventually move to Canada permanently.  Declaring Residency Status Your residency status significantly affects your tax obligations. You must declare your residency status as soon as you consider yourself a resident of Canada. This applies even if you came to Canada temporarily to collect your documents. Its vital to inform your accountant of your first landing date, not just the date you moved to Canada permanently. This information is essential for accurate tax filing and avoiding complications with the CRA. World Income Declaration New immigrants often have concerns about declaring world income, fearing double taxation or unnecessary complexity. However, declaring your world income, even for the period before you moved to Canada, is essential. For example, if you moved to Canada in July and worked in another country from January to June, you must report that income on your Canadian tax return. Reporting world income is important for several reasons: 1- Personal Tax Credits: If your Canadian income constitutes 90% of your total world income, you may be eligible for the full personal tax credit, resulting in a larger refund. 2- GST Credits: Accurate income reporting ensures you receive the correct GST credits and other benefits. Declaring Foreign Property As a new resident, you must also declare any foreign property valued at $100,000 CAD or more. This includes bank balances, mutual funds, insurance policies, and real estate. Use form T1135 to report these assets. Declaring foreign property is beneficial for several reasons: 1- Capital Gains or Losses: When you sell foreign property, any capital gains or losses must be reported. Declaring these assets from the beginning ensures you can claim benefits in future tax years. 2- Legal Compliance: Keeping the CRA informed about your foreign assets ensures your compliance with Canadian tax laws. File form T1135 annually until you dispose of the property, maintaining transparency with the CRA. Filing Your Taxes Electronically In recent years, the CRA has simplified the tax filing process, making it possible for first-time filers to submit their taxes electronically. This includes form T1135 for foreign property. E-filing is faster, more efficient, and reduces the need for paper submissions, which can extend processing times.   For new immigrants in Canada, understanding and fulfilling your tax obligations is crucial. Here are the key takeaways: 1. Declare Your Residency Status: File taxes for the year you first landed in Canada, regardless of the duration or purpose of your stay. 2. Report World Income: Include any income earned before moving to Canada for accurate personal tax credit and GST credit calculations. 3. Declare Foreign Property: Use form T1135 to report foreign assets valued at $100,000 CAD or more, ensuring long-term benefits and compliance. 4. E-File Your Taxes: Utilize the CRA’s electronic filing system for a streamlined and efficient process. By following these guidelines, new immigrants can ensure they meet their tax obligations, avoid future complications, and maximize their benefits and credits in Canada. Let Worldbridge Immigration Services be your guide to a successful future in Canada  Contact us: Website: www.theworldbridge.ca Email: info@theworldbridge.ca Phone/WhatsApp: +1-416-727-7766 Social Media: @worldbridgeHQ